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ISLAMABAD: Pakistan International Airlines (PIA) has announced a reduction in its fares on domestic and major international flights, including Umra fares, with immediate effect to stabilise unrealistic hike in fares and to facilitate its valued customers.
PIA spokesperson Daniyal Gilani confirmed to Dawn.com that fares have been reduced by up to 50 per cent.
Fares on Karachi-Islamabad-Karachi and Karachi-Lahore-Karachi are now be starting at Rs7,500 while return tickets for Umra would start from Rs54,500 for passengers from Lahore/Islamabad and Rs44,500 for passengers from Karachi.
Strike ends
The reduction in fares comes a day after the Joint action Committee (JAC) of Pakistan International Airlines (PIA) employees announced the end of its strike against the proposed privatisation of the national flag carrier and asked employees to resume flight operations across the country with immediate effect.
Private carriers had allegedly hiked their fares during the duration of the strike by the national carrier. The Competition Commission of Pakistan has taken notice of the fare hike by private carriers.
Privatisation of PIA
The National Assembly on January 21 witnessed the passage of six bills, including one to convert the national flag carrier into a public limited company.
Under the bill, Pakistan International Airlines Corporation (PIAC) is to be converted into a public limited company as Pakistan International Airlines Company Limited (PIACL).
The government plans to split the ailing national flag carrier PIA into two companies and sell the control of its core business to a global airline, but the opposition to the sell-off has been intense.
Read more
On DawnNews
Comments (92) Closed
Feb 10, 2016 12:57pm
Reduced fares, combined with improved service, on-time schedule and professional attitude of staff will go a long to revive the airline.
Be competitive and earn the trust and loyalty of the customers.
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Feb 10, 2016 12:59pm
PIA employees should show good-faith in keeping the company afloat and their jobs, by taking a 50% cut in salaries for at least six months.
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Feb 10, 2016 01:01pm
IF PIA unions offer to take pay cuts across the board, in return for shares in future privatized organization and performance bonus instead, it can save the company, and improve the moral and service reputation of the company, while saving precious cash.
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Feb 10, 2016 01:05pm
Good move ... but who will ensure that consumer gets the sir advantage??
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Feb 10, 2016 01:06pm
Great News...........make a independent board to govern PIA.......if we sell our airline then private companies would create a monopoly just like Pakistani Automakers (Honda, Toyota and suzuki) have done and would increase the rates manifold.........just make it work efficiently without political influence please.......
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Feb 10, 2016 01:11pm
Those who favour privatisation and are with monopoly class must bear in mind that recent airtickets Karachi to Lahore by private airlines was Rs54000 in absence of PIA.Same is the story with Cement and Sugar where all industries in private sector and the local domestic prices are double the international prices.These all industries are owned by the ruling class.Human resources on merit bring positive results,so inject best management and forget privatisation.
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Feb 10, 2016 01:21pm
Oil price came down probably up to $20 dollar's per barrel and we haven't had the benefits, plus PIA domestic tickets are also very high for poor Pakistani nation and no one taking notice of this particular subject. To whom we should consult? Who is the responsible person in this country?
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Feb 10, 2016 01:26pm
Just split the airline into to this is good business practice. Employees must work hard or go home
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Feb 10, 2016 01:27pm
Good step… Reduce fares, Increase fleet size, enhanced focus on Customer Satisfaction, lay off incompetent workforce thorough voluntary/non-voluntary attrition... Employee to aircraft ratio should not be more than 100... Review “Open Sky Policy” which has not been beneficial for PIA... Start charging foreign airlines a “Royalty Fee” per passenger… No political interference should be allowed... No free rides…
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Feb 10, 2016 01:28pm
There seems to be no reduction in prices.
These exact same prices were there last week too.
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Feb 10, 2016 01:29pm
These guys need to be shut down and sold for scraps. Send the leeches home.
Besides with PIA out of the picture, there might be some other airline taking it's place and hopefully it won't cancel flights at the last moment leaving passengers in limbo.
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Feb 10, 2016 01:31pm
@Ali .Its 36 dollars now a days.Which world do you live in.
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Feb 10, 2016 01:31pm
@M Jamal i totally agree....no need to privatise....instead of previous incompetent Chairmans like Rao Qamar and Khaqan Abbasi some good managers should be bought in and useless employees should be fired......
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Feb 10, 2016 01:40pm
I wonder how it will benefit those who already have tickets to fly in future two three months?
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Feb 10, 2016 01:41pm
@M Jamal You rightly said privatization will lead to monopolizing by the investors like it has happened in Cement and Sugar......
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Feb 10, 2016 01:44pm
I just check Lhr to Isb - £590. No reduction in that
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Feb 10, 2016 01:44pm
Not that I have anything in particular favor of private carriers, but this fare reduction by PIA equates to tax payers money being used to throw private airlines out of business. PIA is currently subsidized by the government. Competition Commission or courts need to take notice.
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Feb 10, 2016 01:48pm
@Ali If government gets out of doing business and performs its role of regulating businesses, needs of the nation will be taken care of. If the nation finds airplane, train, or bus fares too expensive, then the nation needs to work hard and improve its economy. The nation is poor because we expect the government to give subsidies here and there. We should work hard and create a better society. Economy and governance will improve just as a result of a more aware and reasonable society.
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Feb 10, 2016 01:49pm
@Ali : The responsible person of this country present out side the country always and once in a while come to this country !
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Feb 10, 2016 01:53pm
I would like to admit that this govt (with all its faults) is proving to be the best regime in Pak's history!!! good going PMNS
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Feb 10, 2016 02:02pm
I just traveled from Karachi to Lahore on the evening after the PIA strike was held and 2 person got killed. I bought the ticket 1 day ago from Shaheen (a private airline). It was just for 8,400 Rs. PIA ticket prices were way above at 13,000-15000. The private airlines are already charging far lesser rates than PIA and yet both are profitable while PIA is in heavy losses.
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Feb 10, 2016 02:08pm
govt should not be in service industry.Officials use it for free and losses mount.
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Feb 10, 2016 02:13pm
Privatising the booking and ticketing system would cut PIAs losses by at least 15℅ as there are a lot of scams going on there. Many a time flights operate with empty seats when the booking staff hold onto these for their own vested interests.
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Feb 10, 2016 02:13pm
Good Move , should work like professional way.
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Feb 10, 2016 02:15pm
Reduced Fares? PIA is already in loss.... reducing fares would only increase loss and burden on the government and tax payer money.
What is the other side of equation? Where is the profit going to come from?
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Feb 10, 2016 02:22pm
Completely clueless about this move... a loss running entity is offering discount on revenue side rather than cut on expense side.
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Feb 10, 2016 02:25pm
@Skeptic and you will be paying tuition fee , Bills, medical expenses for their family Brilliant !
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Feb 10, 2016 02:29pm
@Adeel What a senseless comment!
Without a job, if the airline goes under, I suppose you will pay 100% of their expenses? There is no such thing as unemployment benefit in Pakistan.
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Feb 10, 2016 02:35pm
YOUR COMMENT good job
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Feb 10, 2016 02:48pm
Price reductions is the last nail in the (debt heavy PIA) coffin. PMLN will take dissolve PIA one way or another.
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Feb 10, 2016 02:54pm
A good move but not a long term solution. Privatization is NOT the solution because anyone who buys 26% (or whatever # of shares), if they are able to make money out of it, why cant the present administration make profit?
The "only" solution is to reduce unnecessary staff which is the real burden accumulating constant losses, put qualified staff (on merit) and pay them based on performance and reward them on the basis of business they would generate. NO POLITICAL APPOINTMENTS!!!!!!!!
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Feb 10, 2016 02:59pm
So Government Trick worked. Good Job PMLN, Indeed one of the most criticized government in the history of Pakistan.
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Feb 10, 2016 03:02pm
first freeze new hiring, second offer a golden handshake based on tenure to all the excess employees, third run it on a skinny budget like many low cost airlines, fourth become a low cost airline reduce prices to compete locally and globally, fifth issue shares to employee as benefit rather than pay increase (let them feel the pain and gain). Achieve this in three years and make it a public company. Yes, sell the assets domestic and abroad in a most transparent manner, open bidding telecast it on TV. After opening the highest bid. Offer the opportunity to qualified bidders to raise if they want to.
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Feb 10, 2016 03:08pm
Good move...this will push the airline further in debt, making privatization of the whole 100% and not just 26 %, inevitable.
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Feb 10, 2016 03:10pm
@Skeptic
A fifty percent cut in salary is unrealistic.
Employees should not misuse the facilities like filling up seats with non-revenue family and friends of employees, outright stealing of PIA property from aircraft parts to spoons and blankets, treating the passengers professionally because they pay their salary.
PIA employees can learn a lot from other successful airlines like Cathay Pacific, Singapore Airline or Turkish Airline.
My wife and I use all these airlines regularly in addition to flying PIA. Improvement in service and attitude of PIA employees is a crying need if it is to survive as a national airline.
Politicians should stop misusing it to to lure voters as untrained , uncouth employees .
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Feb 10, 2016 03:12pm
@Mahmood What I am trying to say that why would PIA cut 50% of their salaries ? government have money to launch new airline but not enough to pay dues for the existing one ?
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Feb 10, 2016 03:13pm
@Abdullah. No they won't. That's why you have a Competition Commission to deal with that issue. There are such things as regulatory bodies you know.
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Feb 10, 2016 03:16pm
@M Jamal
Fully agree Sir,
More could be added like K-Electric or PTCL. However, lets us stick to state-owned versus privatised PIA.
Just to dispel the deliberate MISINFORMATION being peddled regarding PIA being privatised as the only option let me inform fellow readers that the world's best run airline SINGAPORE AIRLINE is majority owned by the Singapore government. So is Emirates, Qatar, Ettihad and other Mid-east airlines.
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Feb 10, 2016 03:19pm
@Parvez
No Sir,
Not necessarily. It is pure economics of demand and supply. This will fill up seats and INCREASE revenue not DECREASE it (subject to other changes like professional management and customer service).
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Feb 10, 2016 03:19pm
Totally agreed. The intention of the current rulers behind privatisation is simply to sell the airlines cheap to some crony, local or foreign, and then establish a monopoly. they want to do the same with Steel mill and other state entities. Hats off to the PIA employees who put up a gallant resistance to their designs!
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Feb 10, 2016 03:20pm
@analyses It looks like airfares are really expensive in Pakistan. Karachi to Lahore is similar distance as Bangalore to Mumbai. We get fares as low as INR 2500 in `no frills' private airlines.
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Feb 10, 2016 03:21pm
Finally their prices are at market level
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Feb 10, 2016 03:23pm
@Skeptic really; they need lot more cut probably 95% and lot more redundancies as 600 employees for one Airplane is way too many by any standard.
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Feb 10, 2016 03:23pm
Astonished! Ealier PIA plane checking authorities were blaming govt.for forcefully starting the flights while planes were not in good condition to fly, now all such accusation have been subdued. It seems there has been some give and take between the govt. and the employees and plane checking authorities that have mitigated all the plane fitness complaints.
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Feb 10, 2016 03:24pm
PIA has not slashed fares by 50%. They have brought them back to where they were before the strike. Moreover, the impact of low oil prices is not there. These ticket prices are still the same, when oil was more than USD 100 per barrel.
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Feb 10, 2016 03:30pm
@Abdullah : Ok but even this 36usd oil rate is just 33 pc of the max price which prevailed earlier.
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Feb 10, 2016 03:33pm
Back to square one.
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Feb 10, 2016 03:34pm
2/2
Then we complain why PIA onboard staff is not helpful, becuse they will treat you exactly the way you treat them , you give them respect which they deserve you will get exactly same in return , you polite they are polite.
Now the problem start when you land at the Pakistan Airport no matter where karachi , larhoe every where . FIA and other officials will take over and will make sure to make this visit a memorable by doing something that you start cursing PIA and blame everything happened on the airport .
Having said all this yes their is alot need to be done to improve our national airline and Management needs drastic measures , we got to remove politics element out of PIA and PIA should work as corporation for the better interest of the country where everyone treated equally Hell no to VIP culture which is one of the main reason why PIA nearly dead 2/2
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Feb 10, 2016 03:38pm
@A Pakistani : You have made a wrong comparison here. All the airlines mentioned there are indeed govt. owned, but run like private entities and organizations. There are no political appointments and rules for hiring and firing are similar to those of private organizations. Once you have the threat of being fired, everyone, even those in govt. organizations will perform. This is unlike the PIA which is filled with political appointees, mostly incompetent, who know that their jobs are guaranteed and secured and that they will receive their salaries and perks from the govt. even if PIA as an organization goes down under. Obviously this money comes from the tax payers pockets.
No doubt there are trained and competent staff in PIA as well, but it is those how are out there for a free lunch that are sinking PIA.
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Feb 10, 2016 03:42pm
@Skeptic ! very well said
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Feb 10, 2016 03:52pm
by the way these prices are exclusive of taxes in total one ticket will cost roughly 15000 PKR
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Feb 10, 2016 03:57pm
@Samad Chaudhry London : If you had already bought tickets, then you should be glad its flying at all. It doesn't seem like there is any change in ticket prices over the easter break, they are still the same.
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Feb 10, 2016 03:58pm
Take privatisation off the table first of all. If mass layoffs is not an option, then start with slashing every single benefit for every employee (such as free family member flights etc etc that cost billions ever year). This will further damage the unions, as hard working honest employees will be on one side against the slackers/freeloaders on the other. Break the freeloaders controlled unions if PIA is to progress even as a profitable national airlines.
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Feb 10, 2016 03:59pm
@stranger - will also impact train travel, who'd now buy the train ticket that costs between 4-5K in AC classes?
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Feb 10, 2016 04:00pm
@Haider - Ireland I believe PIA could be very efficient, lean and competitive organization, which can return to profitability with under 10,000 employees.
Just from the stand-point of passenger-per-mile flown revenue model, and fleet to pilot ratio, it makes no sense for this company to have bloated payroll.
Just 40-50 pilots per plane (as opposed to 420 now) and 100 total employees to a plane parity is realistic enough to make PIA competitive.
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Feb 10, 2016 04:09pm
may we know who are potential buyers ?.
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Feb 10, 2016 04:21pm
Now from Islamabad to Skardu viva PIA is just 4000 after 50pc.
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Feb 10, 2016 04:21pm
Either way we slice it, PIA is beset with excess baggage of too many employees. Add to that the excessive free or reduced fare travel afforded by the families, which take up seats of full published fare-paying passengers, and you have a perfect recipe for losses and bleeding cash.
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Feb 10, 2016 04:22pm
A good step by PIA for prosperity and progress.
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Feb 10, 2016 04:27pm
Yeah half fare for half the chances of arrival.. :) no thank you!! I would rather take Air Blue...
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Feb 10, 2016 05:02pm
How would slashing the fares will help cope with losses? Is it to drive PIA into the ground so that chances of privatization become higher.
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Feb 10, 2016 05:03pm
@Shan - your comments is exactly what govt wanted people to say. in that case govt have succeeded people in believing PIA is irreparable hence privatization is inevitable. again this PIA will be sold to some one form ruling or opposition party members. where the hell a commoner goes to ?.
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Feb 10, 2016 05:14pm
Maybe PIA should adopt the business model of budget carriers - Without compromising safety of course. There's a lot to be said for low fares but high volume passengers.
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Feb 10, 2016 05:18pm
We just need a honest man with good common sense to make this airline profitable. PIA need to maintain their margin through quality. It has all infrastructure and market existence since long time. There must be no problem to run this airline profitable .
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Feb 10, 2016 05:21pm
@Mahmood a very good idea.
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Feb 10, 2016 05:25pm
Take political influence in and PIA is a real asset. PIA should not give in to political influence and must not delay flights to accommodate late arriving corrupt politicians.
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Feb 10, 2016 05:27pm
@Mahmood
Unemployment benefit does not exist in most of the South American, African and Asian Countries, why name only Pakistan.!
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Feb 10, 2016 05:38pm
I would go against privatisation of PIA, purely because it won't last for long in free competitive market, i would however focus more on efficiency and effectiveness, cut down on cost and get rid of dead wood. No more free rides for ministers i don't care if they it is the PM, sorry pa gi, finally, i would run PIA as if it was like a private company, with simular policities, and accountability and staff stats etc..
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Feb 10, 2016 05:51pm
Excellent move! If only PIA can take the same attitude to service, on-time flying and clean cabins and attentive service the competition will be sent off howling.
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Feb 10, 2016 05:58pm
@Abdullah CL1:COM WTI Crude Oil (Nymex) USD/bbl. 28.47
CO1:COM Brent Crude (ICE) USD/bbl. 30.83
CP1:COM Crude Oil (Tokyo) JPY/kl 21,860.00
NG1:COM Natural Gas (Nymex) USD/MMBtu 2.08
In which world you are living? It will go even down once Iran oil will come into the market.
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Feb 10, 2016 06:00pm
These fares can further be reduced to half if the dead-weight of surplus staff loaded at 450% above the normal acceptable in the airlines is made effective.
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Feb 10, 2016 06:12pm
Called a travel agent in Oslo (Norway) a couple of weeks ago and he started laughing when I asked for PIA flight prices to Pakistan. He asked me "Why would you travel with PIA?" He then went on to tell me how corrupt it was, low quality service it provided and on top on that it was the most expensive option.
When it comes to airlines marketing is everything. PIA has a major maketing issue. It all boils down to top management.
This is what international travel agents talk about PIA.
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Feb 10, 2016 06:46pm
A commendable step on the part of the government of PAKISTAN to slash fares of the air transport. Please coordinate with the provincial governments by the federal government to reduce transport fares to the big cities after bringing prices of the petroleum products down and set the fares according to the new oil prices.
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Feb 10, 2016 06:55pm
@M Jamal that's just demand and supply
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Feb 10, 2016 07:35pm
Make it free, Folks. :)
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Feb 10, 2016 07:39pm
CEO must be out of mind as there is already too many free loaders!
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Feb 10, 2016 08:49pm
Good move ... All PIA staff earning more than 1 lakh should take 20 to 50 % salary cut for one year(this was done by Singapore airlines in the past to revive). Install foreign management to look after and audit PIA affairs.
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Feb 10, 2016 09:01pm
PIA has offices all over the world , even at places they no longer fly to. For example they have an office in Houston TX in the priciest of locations on the ground floor of a building. I am sure the office has employed the person who is well connected at salary comparable with other airlines.
PIA is a scam run by the be employees on the backs of honest tax payers of Pakistan. It is morally,financially and legally bankrupt ,an effigy propped up by the incompetent "democratic" governments under the guise of patriotism and national symbolism.
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Feb 10, 2016 10:36pm
PIA is a national flagship carrier and represents Pakistan's brand image around the world. The demolition of this brand by our politicians is unprecedented.
Those trying to divest it must be questioned.
We must do everything to keep the carrier flying and keep it a Pakistani owned entity.
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Feb 10, 2016 11:03pm
How can a failing and dying airline can survive with such a reduction in fares ?
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Feb 10, 2016 11:15pm
@Sudhir Neyalasinger
I have flown Air India, Delhi to Hyderabad and back in 2013 for Indian Rupees 24800.00. According to flight time it is nearly the same as Karachi to Islamabad and back.
With the marketing mentality of the airlines it is not always appropriate to make comparison between any two airlines.Here, in North America the drama is bigger.
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Feb 10, 2016 11:23pm
Being competitive is survival nowadays.
And please improve the service as well.
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Feb 11, 2016 12:49am
Fares slashed by 50% and service by 80%. The real truth.
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Feb 11, 2016 02:07am
Salam, I have been living in US for almost 23 years. PIA is not expanding in USA like it used to, it cut its destinations in more than half in USA. A person like me I try to support Pakistan economy, but I can't find a better fare and schedule from where I need to fly from.
PIA made it difficult for overseas Pakistani to fly on PIA on purpose. First I flew to USA was in 94 and our Plane from ISB was late like 8 hrs I think from ISB. I flew then in 2006 and our plane again from ISB was late like about 8 hours. They didn't improve all those years. I think Shaheen and Air Blue are doing better.
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Feb 11, 2016 02:41am
what start is this? text book tactic here...
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Feb 11, 2016 03:04am
@Abdullah, Closed at $27 and change yesterday Feburary 9th 2016.Wake up,the world is passing us by,the price of gas(petrol) is based on the market right? not in Pakistan
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Feb 11, 2016 03:42am
Its a step in right direction, increase productivity by lower fares and making a competitive environment.
In the comments section somebody mentioned the fare from Lahore -Islamabad was 54,000/ during PIA strike. This is utter nonsense this was NOT the case. People exaggerate too much.
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Feb 11, 2016 04:03am
Just checked and in response, Emirates and Turkish airlines have also lowered the fairs ! PIA cannot win this game with these airlines unless it starts sweetening the deal with free domestic return tickets with any purchase on international routes. This move can also have positive effect on tourism
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Feb 11, 2016 04:56am
@Skeptic You ask for too much, did you forget the "CHALTA HAI" attitude in our countries?
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Feb 11, 2016 12:54pm
Is there any reduction by PIA on their international flight? If so,its good news for overseas Pakistanis
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Feb 12, 2016 08:53pm
No part of PIA should be owned by Nawaz's clan. It is fine to have it a public company with strict checks and balances. And identify people who are getting paid by PIA for doing nothing and the ones who have been hired by the influential, the sifarishi and the corrupt. PIA's internal audit department should be involved with complete independence and annually it should be audited externally by KPMG/E&Y/PW&C/Deloitte etc. No more opportunists in this company.
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Feb 12, 2016 09:21pm
@Skeptic PIA employees should be encouraged to put up their best efforts to improve service to their customers. Reducing salaries is not the answer to the financial problems PIA is facing . The problem is mismanagement. You have to put capable and honest top management with full power to turn around PIA. Other successful airlines are paying more percentage of their revenue as salaries to their employees.
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